BOE is expected to secure 20 billion Yuan (roughly 3 billion US Dollars) in funds to expands its Chongqing Display factory in China, which is also known as the B12 line. This site produces its OLED panels that are used on smartphones, while its 2nd Gen 10.5 LCD factory is also expected to reach its full capacity in H1 of 2021.
According to TheElec report, local media has revealed that the Chinese display maker will be reaching max capacity on its 2nd gen 10.5 LCD factory within the first half of this year. In other words, the aforementioned funds secured by the company will be used to secure additional shares of Wuhan BOE Optoelectronics, its LCD factory that produces display panels over 32 inches.
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Furthermore, BOE had also previously stated that its Wuhan factory will begin to run at full capacity in the first half of 2021. Notably, the factory is the company’s second after its Gen 10.5 CD plant that is situated in Anhui. The factory in Wuhan began operations back in 2019 and the company had planned an expansion in 2020, which got delayed due to the pandemic. During this time, the production had also halted temporarily. Both the Wuhan and Anhui factories have a production capacity of 120,000 substrates per month.
Additionally, the expanded production will also raise the dominance of BOE and CSOT in the LCD market. Back in 2020, BOE had bought Gen 8.5, and 8.6 LCD factories while CSOT is aiming on purchasing the Suzhou LCD plant of Samsung Display. The company has also told investors that its LCD panel supply will be tight in the first quarter of this year. For those unaware, the prices of LCD display panels have risen since the second half of 2020 and is still rising, as Samsung and LG downscale their respective production.
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